We Discuss Whether Jubilee Metals Group PLC's (LON:JLP) CEO Is Due For A Pay Rise

The impressive results at Jubilee Metals Group PLC (LON:JLP) recently will be great news for shareholders. At the upcoming AGM on 16 November 2022, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

Our analysis indicates that JLP is potentially overvalued!

How Does Total Compensation For Leon Coetzer Compare With Other Companies In The Industry?

At the time of writing, our data shows that Jubilee Metals Group PLC has a market capitalization of UK£309m, and reported total annual CEO compensation of UK£648k for the year to June 2022. Notably, that's a decrease of 47% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at UK£259k.

For comparison, other companies in the same industry with market capitalizations ranging between UK£175m and UK£701m had a median total CEO compensation of UK£1.1m. In other words, Jubilee Metals Group pays its CEO lower than the industry median. Moreover, Leon Coetzer also holds UK£61k worth of Jubilee Metals Group stock directly under their own name.

Component	2022	2021	Proportion (2022)
Salary	UK£259k	UK£251k	40%
Other	UK£389k	UK£968k	60%
Total Compensation	UK£648k	UK£1.2m	100%

On an industry level, roughly 61% of total compensation represents salary and 39% is other remuneration. In Jubilee Metals Group's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Jubilee Metals Group PLC's Growth Numbers

Jubilee Metals Group PLC has seen its earnings per share (EPS) increase by 12% a year over the past three years. In the last year, its revenue is up 5.4%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Jubilee Metals Group PLC Been A Good Investment?

Most shareholders would probably be pleased with Jubilee Metals Group PLC for providing a total return of 167% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 4 warning signs for Jubilee Metals Group you should be aware of, and 1 of them is a bit concerning.

Important note: Jubilee Metals Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.